BILL NUMBER: S8588
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
private label wine
 
PURPOSE:
To formally define "private label" products and the authorized sale
thereof.
 
SUMMARY OF PROVISIONS:
Section 1. Amends Section 3 of the Alcoholic Beverage Control Law, to
define "private label" as an alcoholic beverage with a brand name or
trade name label that is exclusively owned by a licensed retailer or
such retailer otherwise has the legal right to use the brand name or
trade name belonging to another entity, and such item is sold at retail
within the state exclusively by such retailer; provided, however,
private label wine may also be sold by licensees that are commonly owned
affiliates of such retailer.
Section 2. Amends Section 101-b(3) (3) of the Alcoholic Beverage Control
Law, to exempt "private label" liquor and wine from price posting
requirements.
Section 3. Amends Section 106(3) of the Alcoholic Beverage Control Law,
to authorize the sale of "private label" wine for off-premises consump-
tion by certain restaurant licensees provided such sales are accompanied
by the purchase of a substantial food item.
 
EXISTING LAW:
Section 3 of the Alcoholic Beverage Control Law does not include a
formal definition of "private label." The NYS Liquor Authority defines
"private label brand" as a brand label owned by a licensed retailer. An
alcoholic beverage with a private brand label may only be sold by the
licensed retailer who owns the brand label. The licensed retailer must
own the brand name or otherwise have the legal right to use a brand or
trade name belonging to another entity.
Alcoholic Beverage Control Law Section 101-b requires price posting of
liquor and wine, except any item offered for sale to a retailer under a
brand which is owned exclusively by one retailer and at retail within
the state exclusively by such retailer. Alcoholic Beverage Control Law
Section 106 prohibits on-premises licensees from selling liquor or wine
for off-premises consumption, except under certain circumstances.
 
JUSTIFICATION:
Providing a formal definition of "private label" will add clarity to the
Alcoholic Beverage Control Law. Consumers will have an increased oppor-
tunity to select from private label wines owned by their local retailers
and support growers throughout the State.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
This legislation will help generate sales, excise, and property tax
revenue.
 
EFFECTIVE DATE:
This legislation will take effect immediately.

Statutes affected:
S8588: 3 alcoholic beverage control law, 106 alcoholic beverage control law, 106(3) alcoholic beverage control law